Global Corporates Pay Approximately $120B in Bank Charges to Transfer Money Globally
Over the years, there has been an expansion of international e-commerce, tourism, and remittances. This, in turn, has led to an increase in global corporations that need to transfer money across borders.
Currently, these companies are paying a significant amount of money in bank charges for these international transactions. According to MoneyTransfers.com, global corporations pay about $120B in bank charges to transfer money across the globe.
Speaking on the data, Jonathan Merry, CEO of MoneyTransfers.com, said,
This is a huge amount of money corporations needlessly pay in bank charges. With new technologies, there are now much cheaper and more efficient ways to send money internationally. These providers use the latest technologies to offer much cheaper rates than the banks. They are also much faster and more convenient, which is important for companies that need to make time-sensitive payments.MoneyTransfers CEO Jonathan Merry
Some of the leading alternative money transfer providers include Wise, Instarem, and WorldRemit. These companies have helped corporations save millions of dollars in bank charges by offering more efficient and cost-effective solutions for international money transfers.
Potential of Central Bank Digital Currency
Research into Central Bank Digital Currency (CBDCs) is expanding globally as the advantages of having a digital version of fiat money become increasingly apparent, with central banks already engaged in some form of CBDC research.
The role CBDCs will play in facilitating international transactions and cross-border payments is still being debated, but their potential is already becoming apparent.
In the future, CBDCs could potentially replace SWIFT as the primary means of international payments and settlement. This would be a game-changer for the global economy, making cross-border payments faster, cheaper, and more efficient.
While the full impact of CBDCs on global payments is still unknown, it is clear that they have the potential to revolutionize the way we make and receive cross-border payments.
Local User Needs and Adoption
There are Intriguing possibilities for CBDC as a standard means of exchange for all monetary transactions. Besides, economic systems should experience ongoing innovation and competitive pressure to promote efficiency.
CBDCs that promote creativity and competition in the financial services sector may help meet client’s needs in the future. For this reason, central banks may need some scalability as digital economies develop.
There are concerns that central banks should think about when building a possible CBDC. They include user adoption rate, the need for transitional measures, and the existence of security.